Dear Dr. Don,I am a 43-year-old employee, working full time for a new employer, and I have a 401(k) retirement planning question.

I have a 401(k) plan that lets me contribute -- tax-deferred -- anywhere from 1 percent to 20 percent of my salary to the plan. My employer also contributes a 50 percent match of the first 10 percent of my salary.

I have met all the qualifications to contribute to the plan and receive the match, and I (unfortunately) do not fall into "highly compensated" status. This is all pretty standard -- or so I thought.

I believe the Internal Revenue Service limits my tax-deferred contribution to $16,500 per year, not including any catch-up contributions for those over 50. Thus I have made my deduction election (18 percent of salary) to equal just under the $16,500 limit by the end of the year.

However, my employer says the $16,500 limit is for total contributions (employee contributions plus employer match). [Read the full article]

Michigan lawmakers still haven't agreed on a compromise plan aimed at saving schools money by persuading thousands of older employees to retire.

Lawmakers were pushing to wrap up legislation outlining the plan this month, giving employees time to retire and schools a chance to replace them before the start of the next academic year. But lawmakers adjourned Thursday without reaching a deal and sessions of the Democrat-led House and Republican-led Senate aren't scheduled again until Tuesday.

Negotiations likely will continue over the next few days in hopes of getting a plan done in time to help schools.

"The longer we wait, the less likely it is to allow schools to do the hiring that's necessary to replace the retirees," said Rep. Mark Meadows, a Democrat from East Lansing and a key negotiator on the plan. [Read the full article]

Florida Power & Light Co. is planning to cut staffing levels by about 300 positions this year.

The company, a subsidiary of FPL Group Inc., said Friday that the reductions were mainly because of the difficult economy and a dramatic reduction in new housing construction. The company estimates that about 220 employees will accept an early retirement buyout, reducing the number of layoffs.

FPL says a total of 425 employees will be affected by the cuts, but some might be qualified for other positions the company needs to fill.

FPL is also moving forward with a $2 billion plan to modernize power plants in Riviera Beach and Cape Canaveral. The company says those projects should create demand for 1,300 direct and 4,000 indirect jobs during the construction period. [Read the full article]